The Learners vs the Learned in Times of Change

Job losses due to globalization, immigration, and automation have periodically created much anxiety, especially during tough economical time.The latest bout of anxiety concerns the arrival of artificial intelligence (AI). The intent here is not to debate the merits of globalization or artificial intelligence. Regardless of what policy the government adopts, it is inevitable that some jobs will be forever lost as society changes with time and industry evolves with the advent of new technologies. Fundamental economics also dictate that certain jobs will move to markets where competitive labor cost exists. As a result, millions of people who had become nervous about the pace of globalization turned against the political establishment, and populist voices from those who feel left behind prevailed over other forces in several countries including the United States.

In fact, the issue is not new. I had the opportunity to visit the Ellis Island National Museum of Immigration in New York two years ago and walked through the ebb and flow of how Ellis island became the gateway for over 12 million immigrants to the United States. The conversation about globalization and immigration today is eerily reminiscent of the debates during the periods of heavy immigration to the US more than a century ago. It is so shockingly similar that you could easily mistake some of the cartoons in the newspaper of that time as something published yesterday.

What about technology-induced unemployment? It is not a recent phenomena either. Since the industrial revolution over 200 years ago, new machines have increasingly replaced humans, and output per capita has surged more than ten-fold in most industrialized countries. While the enormous increase in output as a result of technological change has contributed to rising living standards and created new jobs, it has also led to sharp declines in labour demand among the lower skilled. As a whole, however, it is likely that technology will continue augmenting what humans are able to do, as opposed to replacing what humans do.

The reality is that society has always been changing. The subtle difference is the pace of change now is faster than ever before. With the changes, some knowledge will have lifetime utilities while other skills will become obsolete. It is fundamentally important for individuals to take responsibilities to equip themselves with the ever advancing knowledge and evolving skills, and keep up with this dynamic world. You live, you learn. 

At a time when we decry the loss of manufacturing jobs, it may come as a surprise to some that there are 75 million U.S. workers without college diplomas. What the government can and should do? First and foremost is to enhance the quality and relevance of education to increase the overall competitiveness of the work force. Secondly, we should provide the appropriate vocational training so that those whose jobs are impacted by the changes can be incentivized to gain new skills for adapting and pursuing jobs in other fields. For many, especially low-wage workers, basic skills training can be the difference between economic empowerment and persistent poverty.

From a personal perspective, the best advice I have ever read was a quote from Eric Hoffer, who was by some considered one of the finest American philosophers:

In times of change learners inherit the earth; while the learned find themselves beautifully equipped to deal with a world that no longer exists. 

What Eric Hoffer failed to mention is that the world will always be in a time of change.